Oman Investment Authority (OIA) is leading a shake-up of the country’s state-dominated industries, bringing greater scrutiny to the performance of government-run companies and embarking on a privatisation programme to generate revenue and boost the domestic bourse.
Founded in 2020 following the merger of the State General Reserve Fund and Oman Investment Fund, OIA is key to the “Oman 2040” development plan that aims to reduce hydrocarbons’ contribution to GDP to less than 10% from around 34% in 2019.
OIA divides its assets between its National Development Portfolio (NDP) and Futures Generations Fund.
The former holds stakes in about 160 national assets and companies, while the latter is mostly comprised of foreign assets and includes public and private market investments.
“Ownership of these assets was scattered with varying levels of governance standards,” said Joice Mathew, United Securities head of research.
“OIA is more forthcoming about its strategies, investments and divestments and in making public announcements. OIA has taken some good early steps, putting sector experts on the boards of the companies that it owns or invests in.”
Domestically, OIA has interests in myriad sectors. It owns Oman’s state oil and gas producer OQ, Muscat Stock Exchange, bus manufacturer Karwa Motors, Oman Airports, Oman Air, Oman Development Bank, Oman Food Investment Holding Company, and Oman LNG among others.